Tuesday, January 27, 2009

Corporate fraud and the law

There is much to be said in favour of creating an effective legal and regulatory environment to prevent and prosecute corporate frauds. In the latest Frontline, I have focussed on the limitations of Serious Fraud Investigations Office, and the existing regulatory framework. The timely posts by our co-blogger, V.Umakanth on this blog and his colleague on the Indian Corporate Law blog, Jayant Thakur, have been duly acknowledged. Read on

1 comment:

Umakanth V said...

Mr. Venkatesan, thanks for your detailed analysis of SFIO's role and track record. I am "cautiously" optimistic about the Satyam case, however, for the following reasons I have detailed elsewhere:

"There is a silver lining, though. The Government’s response to the Satyam episode has been significantly different from previous corporate scandals. This is evident from the lightning speed at which the Government superseded the board of the company that continues to keep the company as well as the hopes of its investors and employees alive. There is a lot at stake here – the entire IT industry, India’s investment climate, and so on. Going by that (and concluding on an eternally optimistic note), one hopes for a different outcome in the fraud investigation as well in Satyam’s case that may perhaps reverse the erstwhile poor track record of the SFIO."